Tax and Business Alert - October 2014



Welcome to this month's edition of the Tax and Business Alert. Our goal is to provide you with current articles on various tax and business topics. The articles are intended to keep you up to date on trends and issues that may impact your business and personal financial affairs. Please contact us if you have questions about any of the issues discussed.

CONVERTING A SOLE PROPRIETORSHIP TO A LIMITED LIABILITY COMPANY
As sole proprietors, business owners enjoy the advantage of simplified income tax reporting, but sole proprietorship status can expose a business owner's personal assets to the risks and liabilities of their business operation. To provide a broader protection from liability, state statutes generally allow a sole proprietor to conduct business as a limited liability company (LLC). This article explores the benefits of an LLC, but notes that a sole proprietor will need to weigh these against the initial legal and administrative costs of accomplishing the conversion. Read more...

TRAVEL WHILE GIVING TO CHARITY
While it's not possible to deduct the value of services donated to charity, it may be possible to deduct some of the out-of-pocket travel costs incurred. This article describes expenses that are deductible and those that aren't. Read more...

TAX CALENDAR
This article lists a number of key tax reporting deadlines for the final quarter of 2014. Read more...

SIMPLE TAX SAVINGS TECHNIQUES FOR SECURITY GAINS
The market swings over the last several years may cause some investors to wonder if it's time to capitalize on some market gains. This article offers a couple of tax-smart strategies to consider when analyzing investment opportunities and deciding what to do about recent gains. It addresses the issue of whether or not to wait to sell until the stock qualifies for long-term capital gains treatment, and whether to use the FIFO or the "specific ID" method to minimize taxes. Read more...

SWAPPING BONDS TO CLAIM LOSSES
Taxpayers holding bonds that have decreased in value may benefit from a bond swap, which enables a taxpayer to currently benefit from the decline in a bond's value and either increase or keep the same cash flow generated by the bond. To facilitate a bond swap, the taxpayer sells currently owned bonds at a loss and immediately reinvests the proceeds in different bonds. But this article notes that it's important to steer clear of the wash sale rule. Read more...

This publication is distributed with the understanding that the author, publisher and distributor are not rendering legal, accounting or other professional advice or opinions on specific facts or matters, and, accordingly, assume no liability whatsoever in connection with its use. The information contained in this newsletter was not intended or written to be used and cannot be used for the purpose of (1) avoiding tax-related penalties prescribed by the Internal Revenue Code or (2) promoting or marketing any tax-related matter addressed herein. © 2014